Market Overview
The cryptocurrency market is experiencing a significant pullback, with Ethereum dipping below $2,800 and various sector indices showing steep declines. Over the past 24 hours, the market has seen broad declines, with Bitcoin slipping by 1.71% to trade below $87,000. Layer‑2 tokens have led the downturn, with drops ranging between 2% and 7%. Specific tokens like Zora, Linea, and Movement have experienced double‑digit losses.
Sector Indices Performance
Sector indices have also taken a hit, with PayFi down by 3.27%, DeFi by 5.65%, Meme tokens by 4.65%, and Layer‑1 by 3.78%. The steepest declines in sector indices include ssiAI (‑8.39%), ssiDePIN (‑7.14%), and ssiLayer2 (‑7.06%).
Analyst Warning on ETP Liquidations
Bloomberg ETF analyst James Seyffart has warned that a wave of crypto exchange‑traded product (ETP) shutdowns is likely as issuers flood the market with new offerings. Seyffart noted that many of these products may struggle to survive, with a significant number of liquidations potentially occurring by the end of 2026 or more likely by the end of 2027. This warning comes as more than 126 applications await SEC review.
Conclusion
The crypto market is experiencing a significant pullback, with Ethereum dipping below $2,8K and various sector indices showing steep declines. Analysts warn of potential ETP liquidations by 2027 as the market faces increased volatility.
